Student Loan Consolidation compare: Federal Stafford Subsidized Loans VS Federal Parent Plus Loans

Below is a brief Student Loan Consolidation Comparison of Federal Stafford Subsidized Loans and Federal Parent Plus Loans:

	Federal Stafford Subsidized Loans	Federal Parent Plus loans
Borrower	Student	Parent
Qualification Criteria	No credit check No cosigner required	Parent or cosigner must meet credit requirements
Eligibility Criteria	Need-based; school determines eligibility	Non-need based; school determines eligibility
Starting Interest Rate	6.80%	8.50%
Rate Index	91-day T-bill + 1.7%	91-day T-bill + 3.1%
Rate Cap	8.25%	9.00%
Discounts	0.25% with automatic debit 2% after 48 consecutive on-time payments	0.25% with automatic debit 2% after 48 consecutive on-time payments
Guarantee Fee	1% (may be waived)	1% (may be waived)
Origination Fee	3%	3%
Annual Loan Limits		100% of college costs less any financial aid received
First Year	$2,625
2nd Year	$3,500
3rd Year	$5,500
4th Year	$5,500
Graduate	$8,500
Aggregate Loan Limits	$23,000 (undergrad) $138,500 (graduate)	None
Prepayment Penalties	None	None
Repayment Begins	6 months after student graduates or falls below half-time status	30 - 60 days after final disbursement
Repayment Term	10 years	10 years
Eligible for consolidation	Yes	Yes